- At the end of May 2022, public wallets of miners held about $1.5 billion in Bitcoin.
- Purpose Bitcoin ETF sold 24,500 Bitcoin on Friday, increasing selling pressure on the asset and pushing BTC to a low of $18,000.
- Leading American economist Paul Krugman argues that the recent recovery in Bitcoin price is a "dead cat bounce."
Arthur Hayes, the former CEO of BitMEX, believes forced Bitcoin liquidations have increased the selling pressure on the asset and explained the impact on BTC price. The bloodbath in crypto triggered a slew of liquidations by crypto lenders, forcing Bitcoin selling to push BTC lower.
Miners sit on $1.5 billion worth of Bitcoin
Bitcoin miners typically sell BTC to cover their operating costs. Based on data from CoinMetrics, public wallets of miners currently hold $1.5 billion worth of Bitcoin. Experts believe there is a likelihood of a BTC dump and a resulting rise in selling pressure on the asset.
At the end of May, about 46,500 BTC were stored in the wallets of public miners, and these companies would have to sell their holdings to finance their operations. CoinMetrics has noted an increase in the sale of Bitcoin by miners over the past six months.
Bitcoin miners shed their holdings
With rising electricity prices, miners' profitability has reduced, and companies are being forced to exchange their BTC to cover operating costs.
Canada's Purpose Bitcoin ETF liquidated 50% holdings overnight
Canada's Purpose ETF is the world's first actively managed crypto ETF that sold 50% of its Bitcoin holdings overnight. The firm sold 24,500 Bitcoin on June 17, 2022, as the price plummeted to a low of $17,600 on Friday.
Arthur Hayes, the former BitMEX CEO, commented on Purpose Bitcoin ETFs BTC sale. Hayes was quoted in a recent tweet,
Smells like a forced seller triggered a run on stops. Given the poor-risk mgmt by crypto lenders and over-generous lending terms, more pockets of forced selling of BTC and ETH.
Hayes believes a sale of 24,500 BTC is a lot of physical Bitcoin to sell in a small time frame.
Purpose Bitcoin ETF sale on June 17, 2022
Hayes warned the crypto community that cryptocurrency lenders' poor state of risk management could result in more pockets of forced selling of Bitcoin and Ethereum.
Beware of the forced seller ...
— Arthur Hayes (@CryptoHayes) June 19, 2022
An interesting stat someone pointed out to me.
Analyst predicts dead cat bounce in Bitcoin price
While Bitcoin price recovered from the recent slump in price and the community celebrated , Paul Krugman, an American economist, is convinced it is just a flash in the pan.
In a recent tweet, Krugman said that Bitcoin's recovery from a drop below $18,000 is "probably" just a dead cat bounce. The economist argued that it is typical for crypto to see short-lived relief rallies before prices resume a downtrend.
As of this morning BTC is experiencing a modest rally. Probably just a dead crypto bounce. But anyway I thought some history might be relevant 1/ pic.twitter.com/g3ZcSVhuh7
— Paul Krugman (@paulkrugman) June 19, 2022
After collapsing to its lowest level since December 2020, hitting a low of $17,930 on Bitstamp, Bitcoin price made a comeback above $20,300.
FXStreet analysts have evaluated how the Bitcoin price will behave with the US economy heading into a recession. For more information, watch the video:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Sui technical outlook hints at a possible double-bottom formation
Sui (SUI) price action hints at a double-bottom technical formation, which tends to be followed by a bullish move. The Coinglass long-to-short ratio for SUI stands above one and rises, indicating more traders are betting for a rally in SUI.

Bitcoin consolidation continues as market prepares for the next major move
Bitcoin (BTC) has been consolidating between $94,000 and $100,000 since February 5. Glassnode reports weakening capital inflows and declining derivatives activity, with short-term holder accumulation resembling challenging market conditions.

Stellar Price Forecast: XLM’s Total Value Locked reaches over $62 million
Stellar (XLM) price trades inside a channel pattern; a breakout indicates bullish momentum. Crypto intelligence tracker DefiLlama data shows that XLM’s TVL reaches $62 million while the technical outlook projects a target of $0.74.

XRP record gains as SEC acknowledges CoinShares, Canary and WisdomTree's XRP ETF filings
SEC accelerates the XRP ETF filing process by acknowledging CoinShares, Canary and WisdomTree's applications. The new SEC administration has yet to pause the agency's litigation against Ripple due to prioritization of cases with imminent court deadlines.

Bitcoin: BTC consolidates before a big move
Bitcoin price has been consolidating between $94,000 and $100,000 for the last ten days. US Bitcoin spot ETF data recorded a total net outflow of $650.80 million until Thursday.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.